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IRON MOUNTAIN -- Applications will be submitted soon for $29.7 million in Michigan Clean Water and Drinking Water aid, or what Iron Mountain City Manager Jordan Stanchina described Monday as "once-in-a-lifetime infrastructure money."
Whether the grant and loan assistance comes through remains to be seen, but city council members agreed it's worth a try.
A project plan was endorsed Monday after a discussion with Scott Nowack, project manager for Coleman Engineering, who will submit documents to the Michigan Department of Environment, Great Lakes and Energy by May 1. The city is under no obligation to go forward but would need to make a decision if a grant and loan package is offered, Stanchina said.
The Clean Water and Drinking Water state revolving funds are not new but are funded at much higher levels than in the past because of federal aid. Previous funding of about $500 million statewide will be closer to $2.1 billion in this application cycle, Nowack said. Coleman was hired in February at a cost of up to $14,000 to prepare a package so the city could seek a share.
Iron Mountain will propose $13.2 million in water-related costs and $16.5 million in sewer-related costs. The work includes replacement of the city's 48-inch sewer transmission line and neighboring water infrastructure on South Kimberly Avenue. Other areas include portions of West Hughitt, Lake, Forest, Adams, West A, East E, East B, East C, Norway, Sixth and Seventh streets.
The goal is to receive at least 50% grant funding or loan principal forgiveness, Stanchina said. "Without that level of funding, the scope of the project would be greatly reduced or potentially eliminated," he said.
Under a 2018 state order, Iron Mountain still has up to 1,700 lead service lines to replace by 2041 even though its water has tested safe. If the entire project happens, about 425 of those lines could be replaced, Nowack said.
The city may get a preliminary notification from EGLE by August, he said. Bidding would likely take place in 2024 for construction in 2025 through 2026.
Also, the state will require competitive bidding for a full-scale project design and construction engineering if the city is awarded funding.
Being designated as "overburdened" is the key to eligibility and Iron Mountain previously hasn't qualified, Stanchina said. The city is proposing a very large project to help meet that threshold, as it would require a notable increase in water and sewer charges.
Coincidentally, EGLE recently finished a utility rate survey that shows Iron Mountain's 2022 water and sewer charges were among the lowest in the Upper Peninsula. For 5,000 gallons of usage in a month, its total charges were listed at $70.45 per month, lower than all other U.P. cities except Caspian, listed at $68.
In comparison, Kingsford is listed at $73.18 for 5,000 gallons of monthly usage; Iron River, $84.62; Crystal Falls, $108.54; Escanaba, $124.88; Norway, $133.50; Marquette, $149.18; Ironwood, $167.64; and Manistique, $198.52.
Iron Mountain's rates have increased by 19% since the last survey was conducted in 2017, EGLE said. Rates in Kingsford, meanwhile, have gone up 64%, though it still ranks as having the third-lowest charges among U.P. cities.